Sequoia-backed Australian e-grocery firm ends operations

Voly, an Australia-based e-grocery firm, has stopped operations, co-founder Thibault Henry announced in a LinkedIn post.

The decision came amid “sudden changes” in the macro environment, unstable geopolitics, and high inflation, making it difficult to attract new funding, the exec said.

“Without enough runway to reach profitability, we had to make the difficult decision to stop operating.”

Voly co-founders Mark Heath (left) and Thibault Henry / Photo credit: Voly

Founded in 2020, Voly’s service claimed to deliver your grocery orders in 15 minutes or less. It uses electric bikes, employs its own riders and store staff, and operates its own delivery centers.

Before its shutdown, the firm’s services were available in Sydney, where it had acquired 80,000 registered users.

Voly was established by ex-Uber exec Mark Heath and Henry, who co-founded last-mile delivery firm Balto. Late last year, the e-grocery startup raised A$18 million (US$12 million) in a seed round led by Sequoia Capital India, with participation from Global Founders Capital and Artesian Capital.

See also: The key players in Southeast Asia’s online grocery market

The firm’s closure marks the latest setback for the quick commerce space globally. US-based Gopuff laid off 1,500 employees and closed 76 warehouses in July, while Flipkart has scaled down its quick commerce unit.

In Indonesia, East Ventures-backed Bananas also closed its operations after launching in January. E-grocery firm HappyFresh has shut down its quick commerce service, and Dropezy has also pulled back from the sector.

Currency converted from Australian dollar to US dollar: US$1 = A$1.49.